Franchising Code updated and commencing 1 July 2010

Amendments to the Franchising Code announced by Minister Craig Emerson on 4 June 2010 come into force today. Amongst other things, the amendments require franchisors to:

• give six months notice if they are not going to renew a franchise agreement
• disclose to prospective franchisees information on unilateral contract variations or confidentiality obligations
• make clear what kind of obligations a franchisee has in terms of future capital expenditure or whether there are any requirements to pay a franchisor’s legal costs

A compilation of the updated Franchising Code is available on the ComLaw website.